Author: Alex Beerling

Summary

Summer is often one of the busiest seasons for many small businesses across Michigan’s Upper Peninsula. From contractors and landscapers to retailers, restaurants, tourism businesses, and event vendors, warmer weather creates new opportunities—but it also introduces seasonal risks that can expose costly insurance coverage gaps. Many business owners assume their current insurance policy automatically covers every summer activity, only to discover limitations after a claim occurs.

Understanding where coverage gaps commonly exist can help business owners protect their operations, employees, customers, and financial future before the busy season reaches its peak.

Key Takeaways

• Summer operations often create new insurance exposures that weren’t present during the winter.
• Hiring seasonal employees can increase workers’ compensation and liability risks.
• Commercial auto policies should be reviewed before adding drivers or vehicles.
• Equipment used off-site may need additional protection.
• Outdoor events and temporary operations may require special coverage.
• Cybercrime doesn’t slow down during summer vacation season.
• An annual insurance review helps identify coverage gaps before they become expensive claims.

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Summer Success Brings New Risks

For many small businesses throughout Michigan’s Upper Peninsula, summer isn’t just another season—it’s the busiest time of the year. Contractors are racing to complete projects before winter returns. Landscapers work long hours maintaining residential and commercial properties. Restaurants expand outdoor seating. Retail shops welcome tourists exploring the area. Campgrounds, marinas, and recreation businesses see an influx of visitors eager to enjoy the lakes, trails, and outdoor activities that make the U.P. such a special place.

Growth is exciting, but increased activity often means increased risk.

Many business owners review their insurance when they first open their doors, then rarely revisit it unless they’re required to. Unfortunately, businesses change much faster than insurance policies. New employees, additional equipment, expanded services, and temporary summer operations can all create coverage gaps that leave owners unexpectedly responsible for thousands of dollars in losses.

Taking the time to review your insurance before or during the summer season can help ensure your business remains protected when unexpected events occur.

Seasonal Employees Can Change Your Risk Profile

One of the most common summer changes involves hiring additional help.

Whether you’re bringing on college students, temporary workers, or part-time seasonal employees, your business exposure changes the moment someone begins working for you.

Questions worth asking include:

• Are all employees properly covered by workers’ compensation?
• Have payroll estimates been updated?
• Have new drivers been added to commercial auto policies?
• Have employees received proper safety training?

Summer employees often have less experience than full-time staff. That can increase the likelihood of workplace accidents, property damage, or injuries involving customers.

A simple onboarding process, documented safety procedures, and updated insurance information can significantly reduce your exposure.

Commercial Auto Coverage May Need Updating

Summer usually means more driving.

Construction companies visit multiple job sites each day. Landscapers haul equipment across town. Delivery businesses increase their routes. Retailers attend community events and festivals.

If your business adds vehicles or drivers during the summer without notifying your insurance agent, you could unknowingly create a serious coverage issue.

Consider reviewing:

• Newly purchased vehicles
• Employee drivers
• Personal vehicles used for business
• Trailer coverage
• Equipment transported between job sites

Many business owners don’t realize that personal auto insurance may not provide adequate protection while conducting business activities.

Making sure your commercial auto policy accurately reflects your operations helps prevent unpleasant surprises after an accident.

Equipment Away From Your Business Needs Protection

Expensive equipment often spends more time away from the office during the summer.

Contractors transport tools to construction sites.

Landscapers leave equipment at multiple locations throughout the day.

Photographers, caterers, and event vendors frequently travel with valuable gear.

Standard commercial property insurance generally protects property located at your primary business location. Equipment that’s constantly moving may require additional inland marine or equipment coverage.

Replacing stolen or damaged equipment can be extremely expensive and may delay projects for weeks.

Reviewing how your equipment is stored, transported, and insured is an important part of managing summer risk.

Outdoor Events Create Additional Liability

Summer brings festivals, farmers markets, community celebrations, and outdoor events across the Upper Peninsula.

Participating in these events can be excellent for business—but they also create unique insurance considerations.

Ask yourself:

• Does the event require proof of insurance?
• Are additional insured endorsements needed?
• Are tents, displays, or rented equipment covered?
• Does your liability policy extend to temporary locations?

An accident involving a customer, vendor, or passerby can quickly become expensive if your coverage doesn’t extend beyond your primary business location.

Planning ahead allows you to meet event requirements while protecting your business.

Property Improvements Can Affect Coverage

Many businesses renovate during the summer months.

You may install new signage, expand outdoor seating, purchase new equipment, remodel office space, or build additional storage.

These improvements increase the value of your business property.

If your insurance limits haven’t been updated, your building or business personal property could be underinsured.

Likewise, adding expensive equipment without notifying your insurance company may leave those purchases inadequately protected.

A quick review following major improvements helps ensure your investment is fully covered.

Cyber Risks Don’t Take a Summer Vacation

While many people focus on weather-related risks during the summer, cybercriminals remain active year-round.

Businesses often experience staffing changes, employee vacations, and increased workloads during the busy season.

These distractions create opportunities for phishing emails, fraudulent invoices, wire transfer scams, and ransomware attacks.

Small businesses are increasingly targeted because criminals assume they have fewer cybersecurity resources.

Cyber insurance may help with expenses related to:

• Data breaches
• Customer notification
• Business interruption
• Ransomware recovery
• Legal costs
• Public relations expenses

Even businesses with only a few employees should evaluate their cyber exposure.

Business Interruption Coverage Deserves Attention

Many business owners focus on repairing damaged property after a loss.

What they often overlook is the income they lose while recovering.

Imagine a severe thunderstorm damages your roof in July.

You may have property coverage to repair the building—but can your business survive several weeks without revenue?

Business interruption insurance can help replace lost income while operations are suspended due to a covered loss.

For seasonal businesses that earn a significant portion of their annual revenue during the summer, this protection can be especially valuable.

Umbrella Insurance Provides Extra Protection

Lawsuits can exceed the limits of standard liability policies.

A serious vehicle accident.

A customer injury.

A major property damage claim.

Any one of these situations could result in damages that surpass your primary policy limits.

Commercial umbrella insurance provides additional liability protection once underlying policy limits have been exhausted.

For businesses experiencing increased customer traffic or expanded operations during the summer, this extra layer of protection can offer valuable financial security.

Don’t Forget About Weather

Residents of Michigan’s Upper Peninsula know summer weather can change quickly.

Strong thunderstorms, hail, high winds, heavy rain, and falling trees can all damage buildings, vehicles, and equipment.

Business owners should review:

• Roof condition
• Tree maintenance
• Outdoor storage practices
• Surge protection
• Backup power plans
• Emergency response procedures

Reducing physical risks not only helps prevent losses but may also minimize downtime after severe weather.

Conduct a Mid-Season Insurance Review

Insurance shouldn’t be something you only think about after a loss.

A summer coverage review provides an opportunity to discuss changes that have occurred since your last policy renewal.

Topics to review include:

• Revenue increases
• New services
• Additional employees
• New vehicles
• Equipment purchases
• Building improvements
• Contract requirements
• Cybersecurity practices
• Liability limits

These conversations often uncover coverage gaps that can be addressed before they become expensive problems.

Protect the Business You’ve Worked So Hard to Build

Running a small business requires long hours, careful planning, and significant financial investment. Summer often brings your greatest opportunities for growth—but it can also expose your business to risks that aren’t always obvious.

An annual insurance review is one of the simplest ways to ensure your coverage keeps pace with your business. Whether you’ve hired seasonal staff, expanded your services, purchased new equipment, or simply haven’t reviewed your policies in a while, taking a proactive approach can provide valuable peace of mind.

If you have questions about your current business insurance or would like a personalized coverage review, contact our agency today. We’ll help identify potential coverage gaps, explain your options in plain language, and make sure your business is prepared for whatever the rest of the summer brings.

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